SOMFY - Half-Year Financial 2020

02 2020 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

The results taxedat a reduced rate involve royalties,which were taxed at 10.33%. The main countries that contributed to the difference in the tax rate were Tunisia (€5.7 million), the United States (€0.6 million), Germany (€0.4 million),Poland (€2.0 million), other Europeancountries (€2.3 million)and Middle Eastern countries (€0.3 million). Tax credits were primarily affectedby the SOPEMtax credit (Poland): €0.6 millionat 30 June 2020and €1.3 million at30 June 2019. Other taxes and miscellaneous items include in particular the French Corporate Value-Added Contribution (CVAE), which amounted to €2.1 million at30 June 2020 and €1.9 millionat 30 June 2019.

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES AND RELATED PARTIES NOTE 13 — INVESTMENTS IN ASSOCIATES AND JOINT VENTURES NOTE 13.1

€ thousands

30/06/20

31/12/19

Investments in associates and joint ventures at the beginning of the period

136,549

132,781

Changes in consolidation scope and method Share of profit/(loss) from associates

—

—

1,414

3,846

Dividends paid

—

—

Changes in foreign exchange rates

-996

384

Other

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-462

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES AT THE END OF THE PERIOD

136,988

136,549

“Investments in associates and joint ventures” consistsof investmentsin Dooya (€136.3 million) and Arve Finance (€0.7 million).

Dooya’s performance overthe first six months was as follows:

€ thousands

30/06/20

30/06/19

Income statement Sales

84,900

89,164

Current operating result

3,168 2,019

3,416 1,906

Net profit

At 30 June 2020, given the current crisis, the Group reviewed the value of its shareholding in Dooya in light of impairment indicators (temporary shutdownsof factories and reducedactivity). A discount rate of 12.5% and agrowth to infinity rate of 2.75% wereused as part of the impairmenttest, as at 31 December2019. No impairment charge wasrecorded during the first half of 2020. A one and a half-point increase in the discount rate combined with a two and a half-point decrease in the EBITDA to sales ratio in the normative flow used to calculate the terminal value could lead to an approximately €1.2 million impairment loss on equity-accounted securities.

RELATED PARTIES NOTE 13.2

Associates are companies over which the Group has a significant influence or exercises joint control and which are consolidated using the equity method.Transactionswith relatedparties are made on arm’slength terms. Group purchases from Dooya totalled €1.7 million over the six months to 30 June 2020, €4.0 million over the 12 months to 31 December 2019 and €1.8 million over the 6 months to 30 June 2019. Group trade payables with Dooya stood at €1.0 million at 30 June 2020, €0.6 millionat 31 December2019 and €0.9 millionat 30 June 2019. Transactions withother related partiesinvolved negligible amounts.

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SOMFY – HALF-YEAR FINANCIAL REPORT 2020